Recently, a significant verdict was announced by a federal jury in New York, where South Korean cryptocurrency magnate Do Kwon and his company Terraform Labs were found to be involved in fraudulent activities. This ruling sheds light on justice for investors who witnessed the value of their investments in cryptocurrency plummet to almost zero.
The genesis of this civil lawsuit can be traced back to February 2023 when the U.S. Securities and Exchange Commission (SEC), the regulatory body responsible for protecting investors' rights, decisively stepped in and filed a civil lawsuit against Kwon and Terraform. The complaint detailed how the defendants meticulously orchestrated a fraudulent scheme, resulting in market losses of up to $40 billion. They spun a beautiful lie to investors, exaggerating the prospects and stability of the cryptocurrency tokens they issued, luring countless people into this financial whirlpool.
Following the market crash in 2022, Kwon took the path of fugitive. He faced not only criminal charges in the United States but also became a subject of pursuit by the South Korean police. The former cryptocurrency tycoon recently obtained bail from a prison in Montenegro - where he was arrested last year - and is now awaiting extradition.
In Kwon's absence, a federal jury in the Southern District of New York carefully listened to the testimony of investors who purchased Terraform tokens, whistleblowers from companies that collaborated with Terraform, and other key witnesses. After less than two hours of deliberation, the jury unanimously ruled that Kwon and Terraform were unequivocally responsible for making false statements and misleading investors in their civil fraudulent activities.
In a subsequent statement, Gurbir S. Grewal, Director of Enforcement at the SEC, said, "We are pleased with today's jury verdict, which firmly establishes the responsibility of Terraform Labs and Do Kwon for a massive cryptocurrency fraud. While cryptocurrency investments may seem enticing, full of promises, the lack of necessary regulatory measures has led to extremely serious consequences for real-world investors. We will continue to steadfastly uphold fairness, transparency, and order in the market, protecting the legitimate rights of investors."
Market analyst Noelle Acheson (formerly of cryptocurrency brokerage firm Genesis Trading) commented that the civil trial outcome for Kwon, along with the recent judgment against Sam Bankman-Fried, founder of the cryptocurrency exchange FTX, marks the end of a painful period for the cryptocurrency industry. Acheson remarked, "Many people are deeply saddened by Do Kwon's actions. Those investors feel betrayed." She further noted, "Hopefully, these events will remind people to do their homework before investing, ask more targeted questions, and avoid being misled by empty and unrealistic promises."
Kwon co-founded Terraform with Daniel Shin in 2018. In 2020, the company ambitiously announced the launch of a stablecoin called TerraUSD (UST), claiming its value would be pegged to the U.S. dollar, providing investors with a safe haven from the volatility of other cryptocurrency markets.
Stablecoins typically maintain their specific value by backing them with a basket of underlying assets such as cash and short-term government bonds, allowing investors to redeem them at any time. However, Terraform claimed that UST would adopt a unique mechanism, pegging it to another token issued by the company called LUNA, using complex algorithms to maintain its value relative to the U.S. dollar. If the value of UST deviated from $1, traders would theoretically be incentivized to buy or sell the stablecoin to restore its value to the target level.
In early 2022, UST and LUNA gained popularity, with LUNA even becoming one of the top 10 cryptocurrencies by market capitalization globally at one point, followed closely by UST. Acheson said, "This mechanism was both intriguing and novel, and many smart people at the time believed it could work."
In May 2022, a sudden storm swept through the cryptocurrency market. As large UST holders began selling the token in bulk, UST quickly deviated from its peg to the U.S. dollar, causing panic in the market and triggering a broader sell-off, with the price of UST plummeting almost to zero. At the same time, other tokens associated with LUNA and Terraform also suffered significant losses, with their market capitalizations shrinking drastically. Acheson commented, "The mechanism UST claimed to have built on a false assumption, that people expect it to self-correct, so it can self-correct." She further pointed out, "[Kwon] made unrealistic marketing claims about the stability of the stablecoin, misleading many investors."
This event not only plunged the cryptocurrency market into a downward spiral but also triggered a series of chain reactions. A number of cryptocurrency companies found themselves in trouble, with the hedge fund Three Arrows Capital being the hardest hit, declaring bankruptcy in June. Subsequently, cryptocurrency lending companies Voyager Digital, BlockFi, and Genesis also faced difficulties, indirectly impacting the stability of other major cryptocurrency companies such as FTX. This storm sent shivers through the entire cryptocurrency industry like never before.
#bIgEr4You #Lunc #Luna #USTC
$LUNA $LUNC $USTC

CryptosHeadlines.com - The Leading Crypto Research Network

Terra Classic’s Retracement Reaches Crucial Demand Zone, Offering Potential Support for Bulls Unless BTC Falls Below $27,000.
LUNC’s Prolonged Downtrend Tests Crucial Support at Approximately $0.000060. The Futures Market Exhibited a Bearish Outlook as of the Latest Update.
Following a remarkable rebound in late September, the cryptocurrency market experienced a rapid correction as Bitcoin (BTC) slipped below the $28,000 mark. Notably, Terra Classic (LUNC) witnessed a decline of over 10% from its recent gains, ultimately reaching a pivotal demand zone.
As of the most recent update, BTC was hovering around the mid-range, approximately at $27,100, with an attempt to surpass the $27,500 threshold. If BTC manages to retarget the upper end of the range, which stands at $28,300, there is potential for LUNC to extend its recovery starting from this critical demand zone.

Source: TradingView
Towards the end of September, a noticeable price rejection occurred within the H12 bearish order block (OB) ranging from $0.00006463 to $0.00006805 (indicated in red). This rejection served as confirmation that sellers held the potential to devalue the asset. The bearish OB had maintained its stability since late August, establishing itself as a critical short-term supply area.
Subsequently, the ensuing reversal led to a significant drop of over 10%, causing LUNC’s price to plummet from above $0.0000650 to a crucial demand zone and the weekly bullish OB, situated between $0.00005557 and $0.00006022 (depicted in cyan).
However, the extent of this drop within the demand zone could potentially alleviate if Bitcoin (BTC) does not incur further losses and remains above the $27,000 mark. Under such circumstances, LUNC could mount a recovery and target the supply area around $0.0000650 once more.
In the meantime, the Relative Strength Index (RSI) retreated into the oversold zone, showing no immediate signs of a reversal at the time of this update. This indicated that selling pressure had intensified over the past few days. Additionally, the dip in the On-Balance Volume (OBV) confirmed a decline in demand within the spot market during the same period.
The Futures market was exhibiting a bearish sentiment at the time of this update.

Source: Coinalyze
Despite the potential for a reversal at the demand zone, it’s important to note that the Futures market was firmly in a bearish stance at the time of writing. Notably, the Open Interest rates declined from over $2.4 million to below $2.0 million between October 28 and the time of this update on October 4 during the Asian afternoon trading session.
This drop in Open Interest rates highlights a decrease in demand within the Futures market, indicating a prevailing bearish sentiment. Additionally, the continuous decline in Cumulative Volume Delta (CVD) further reinforces the sellers’ dominance over the past few days.
Therefore, closely monitoring Bitcoin’s price movements is essential for gaining better insight into LUNC’s potential direction in the near future.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
#Bitcoin #CryptoNews #TerraClassic #Lunc #USTC

The following provides a status update for activities for the L1 Task Force from June 11th to June 23rd, 2023, and and ongoing developments.

Q2 Roadmap and Target Dates

The majority of the major deliverables for Q2 have been implemented, with the Cosmos SDK and Tendermint upgrades being completed, the upgrade to Parity completed (wasmvm was upgraded to v1.1.2), and 5% minimum validator commission was effectively implemented.

Key Q2 deliverables include Cosmos SDK v0.45.11, Tendermint v0.34.24, Cosmwasm 1.1.0 (Parity), IBC to Kujira, Cross-chain liquidity assessment, and Tendermint to Comet BFT Assessment

Sprint #6 June 11th to June 23rd

Parity upgrade v2.1.1 completed

Min 5% commission for validators implemented

Post-production support for existing dApp and Smart Contract owners provided

Pull request #356 to resolve issues experienced on Station submitted to TFL on June 17th (still pending approval / merge by TFL)

Parity Upgrade

Parity upgrade completed successfully. Smart contract owners that have not yet upgraded are still able to migrate their contracts.

There were some issues experienced with Station following the upgrade which included the governance page, dashboard, and history. The biggest issue on TFL Station is that swaps between LUNC / USTC are not functional. A PR to address this was opened on June 17th and sent to TFL.

Astroport has indicated they will not be upgrading their smart contracts, and as a result, an alternative solution is required to re-enable this functionality.

Additional Activities In progress / Completed:

5% minimum validator commission Completed

Update of validator and Terra Classic developer documentation. In progress

‘Cherry Patch’ severe security vulnerability patch Completed

Review of ‘Barberry’ severe security vulnerability Completed

Split burntax with distribution module functionality developed PR #272 In progress

dApp Burntax whitelist In progress

Astroport situation assessment and restoration of functionality In progress

Astroport Migration Approach

The use of governance has been recommended to re-enable Astroport functionality. The approach is as follows:

Upgrade the contracts by using the terra_classic branch on the astroport-core repo Completed

Update dependencies on the contracts and fix compiler errors introduced by the dependency bumps In progress

Post commonwealth discussion that we are going to upgrade the contracts using a MigrateContractProposal Planned

Upload the new contract’s code Planned

Create an on-chain gov prop to migrate the existing contracts to the newly upgraded code Planned

Budget Forecast

The L1 Task Force is currently running under-budget due to timing of Xi’s start date, and due to Superman being away without pay for a larger part of the quarter than what was anticipated. The L1 Task Force will return any unused funds to the community pool at the end of the quarter.

2. Over the past week, the L1 Team has been working with dApp owners to assist with any issues experienced post-parity upgrade. We will continue to assist, and if you have any issues with this respect, please reach out to us.

3. TFL Station requires a pull request be merged in order to enable Terraswap LUNC/USTC swaps. A pull request was submitted to TFL on June 17th for this item. Rebel Station was upgraded by TR immediately following the parity upgrade, and LUNC/USTC swaps are functional there.

4. The L1 Team is currently working on the re-enablement of the Astroport smart contracts and LUNC/USTC swap functionality. This will require the contracts be migrated via on-chain governance. The exact process for this is described in greater detail in the status update.

5. There are some additional items that were passed through governance that are currently in-progress, and those include modifying the burntax split to send to the distribution module, as well as the whitelisting of dApp smart contracts.

6. We have also been testing an upgraded version of Go with the current v2.1.1 release which we will likely include in one of the future upgrades for all validators to be upgraded to.

7. We will continue to update throughout the upcoming week as soon as we hear any news from TFL (re: merged PR) and will be providing additional updates as we aim to upgrade Astroport.

Questions or Comments?

If you have any questions or comments with respect to how the development team is progressing, what may be coming up next, or have any other general questions — please do not hesitate to reach out. You can contact myself directly with any questions related to the L1 Task Force on Twitter @LuncBurnArmy, and/or join one of our monthly AMA’s!

By: @luncburnarmy L1TF $LUNC Developemnt team #crypto2023 #Lunc #LuncArmy

DOMINIUM 🦾🧠🛠️

In this article is possible to view the current achievements made by the development L1 team of Luna Classic Block Chain during the Q2, and also understand about developments planned for Q3 on Luna Classic Blockchain.

If you are an investor in $LUNC , and have part or all of your investment in stake, when the proposal is available for governance voting period, you will be able to cast your vote of approval, notwithstanding the validators to whom you delegated your stake investment, will also do so, only if you disagree with the voting direction of your validator, you should then cast your vote in another direction.

Summary

As of June 14th, during the second quarter of 2023, the Joint L1 Task Force has successfully achieved technological parity between the Luna Classic blockchain and other Cosmos blockchains. The first upgrade, v2.0.1, involved upgrading the Cosmos SDK to version 0.45.13 and Tendermint to version 0.34.24. The implementation of Cosmwasm v1.1.0 ensured that Luna Classic's smart contracts are now fully compatible with other Cosmos blockchains. Additionally, the L1 Task Force has implemented a 5% minimum validator commission, setting all validators to a minimum commission of 5%. With the completion of these challenging tasks, the L1 Task Force is confident in achieving all the deliverables outlined in Proposal 11462 by the end of the second quarter.

Based on the successful progress in the first and second quarters, it is proposed that the L1 Task Force be granted a mandate for Q3 to continue the blockchain's development. During Q3, the L1 Task Force will shift its focus to developing strategies to enhance and expedite the reduction of supply for Luna Classic and USTC. The market module will play a key role in achieving this goal. By implementing appropriate capital controls and safeguards, the L1 team aims to prevent potential "death spirals" and utilize the market module to accelerate the reduction of Luna Classic supply.

In Q2, a USTC test environment will be configured to facilitate the testing of various failsafe mechanisms for the market module in Q3.  This test environment will closely approximate the mainnet environment. It will allow for testing the market module and its failsafe/circuit breaker mechanisms using testnet LUNC and USTC tokens.

For Q3, it is proposed to upgrade the Cosmos SDK to allow for additional interoperability with newer optional features being developed in the Cosmos ecosystem. One such feature is the Alliance module, and the L1 team will seek community feedback through a signaling proposal to determine if the community would like to implement the Alliance module in Q3.

The L1 Team will also assist and coordinate with other external teams, such as the 'quant' team throughout the quarter.

The L1 Task Force team members for Q3 will include Superman, Till, Xi, Vinh, and Gevik. They will be managed by LuncBurnArmy.

Primary Benefits anticipated by the End of Q3

 Migration from Columbus-5 to Columbus-6 to reduce sync time for Archive nodes, and to improve overall network performance.

Developed and tested failsafe mechanism within market module to prevent future ‘death spiral’ or excessive minting of tokens.

Cosmos SDK upgraded to v46.x or v47.x

Q3 Activities

July/August 2023

Research, develop, and implement an upgrade for Cosmos SDK by conducting thorough testing and proposing the most stable version, either Cosmos SDK 47.x or 46.x.

Explore, devise, and test reliable failsafe mechanisms for the market module in the USTC test environment. This will involve utilizing the Luna Classic blockchain within the dedicated testnet created specifically for this purpose.

Investigate, develop, and test the feasibility of implementing a maximum cap for LUNC supply within the market module in the test environment, ensuring that the defined maximum supply of LUNC cannot be exceeded.

Calculate and test rate of Oracle pool funding based on Market Module operation with capital controls enabled (in testnet).

August/September 2023

Strategize and develop approach for migrating from Columbus-5 to Columbus-6. Execute the migration process to Columbus-6 with the ultimate goal of reducing the blockchain’s database size, which will be more efficient for validators and infrastructure providers.

Evaluate the recommendations regarding CometBFT versus Tendermint and make a final decision by the end of Q2. Implement CometBFT if it is deemed appropriate.

Identify and address any ad-hoc security vulnerabilities and bugs that are discovered, while also overseeing the management of the L1 Bug Bounty program.

Develop intake form and informational documentation for end-users dedicated to the Bug Bounty program.

September/October 2023

Review testing results for the market module. If successful, re-enable swap mechanism, incorporating established capital controls such as maximum supply limits and daily limits. *Dependent on successful testing and a separate governance proposal.

Upon receiving governance approval, proceed with the implementation of the Alliance Module.

Develop and prepare budget and proposals for the fourth quarter.

Provide detailed elaboration on the design concept for the Smart Contract module, specifically focusing on Enterprise Authentication.

The requested budget for Q3 is:

1 full-time developer (Superman) at a rate of $12.5k USD per month

1 part time developer (Xi) at a rate of $6.25K USD per month

1 part time developer (Till) at a rate of $6.25K USD per month

1 part time developer (Vinh) at a rate of $6.25K USD per month

1 part time project manager (LuncBurnArmy) at a rate of $5.0K USD per month

Discretionary budget – L1/L2 Integration and Maintenance (Gevik) – Rate of $70 /hr up to a maximum of 3k / month

 

OPEX Budget

Monthly OPEX budget of $3k, which averages $1k per developer. This budget amount was ideal for Q1 and Q2, and we would like to maintain this same OPEX amount moving forward. Note: Any unspent OPEX funds will either be rolled into the following quarter, or returned to the community pool should the L1 Task Force not be renewed.

Discretionary computing costs (linodes, AWS, other)

Microsoft 365 subscription for development team

Total Budget Requested

Budget for L1 development will be requested quarterly, and subject to successful deliveries and community governance. For quarter 3, the budget requested is,

$37.20k = $12.5k (Superman) x 3 months

$18.60k = $6.25k (Xi) x 3 months

$9.3k  = $3.12k (Fragwuerdig) x 3 months

$18.60k = $6.25k (Vinh) x 3 months

$15.00k = $5.00k (Project Manager) x 3 months

$9k = $3.00k (L1/L2 Integration) Gevik x 3 months (Discretionary Budget, as-needed development basis, paid hourly at a rate of $70 /hr. Any unused budget to be returned to community pool at the end of the quarter)

$9k = $3k OPEX/compute budget per month x 3 months

—–

$116.7k USD Total for quarter 3

1.25B LUNC - LUNC conversion at 0.00009015 *Current as of June 21, 2023. Will be updated when proposal is posted for vote, based on current LUNC market prices.

Distribution of payments will happen monthly at the end of every calendar month given appropriate milestones have been achieved, and approval for the release of funds has been granted by the signers of the multisig.  Any surplus budget amounts will be sent back to the community pool at the end of the quarter.

—–

Updated:

Removed the Token Factory module based on community feedback.

Fragwuerdig has requested to work 1/2 the amount of time next quarter due to family commitments. Reduced from $18.6k to $9.3k for the quarter.

Total cost for quarter is $116.7k USD

Added: Calculate and test rate of Oracle pool funding based on Market Module operation with capital controls enabled (in testnet).

Removed: In addition, the L1 task force proposes enabling Token Factory for Luna Classic. The Token Factory will provide users with the ability to generate custom native denoms within the LUNC network, as acknowledged by the Cosmos SDK Bank Module. With this functionality, a protocol can create its own token without the requirement of adhering to the CW20 standard. As a result, all tokens within the LUNC network can be utilized as gas-fee payments, collected as protocol revenue, and distributed among LUNC stakers in a compatible manner.

By: LuncBurnArmy Member of L1 #Lunc Task Force #binancefeed

DOMINIUM

06-23-2023